Buying cryptocurrencies by Rovolut has recently gained popularity. However, this is not an ideal option, as in some cases it may be better to use dedicated cryptocurrency exchanges.
When it comes to choosing a form of buying virtual currency, much depends on individual needs and preferences. Risk tolerance and investment goals are equally important. However, it is worth considering buying cryptocurrencies through Revolut. this solution can bring users several benefits – but it is not without drawbacks.
In this article, you will learn whether it is worthwhile to buy cryptocurrencies on Revolut, what are the advantages and disadvantages of this option and not only.
Is it worth buying cryptocurrencies on Revolut?
In 2023, Revolut’s ambition is primarily to maintain the momentum of 2022 and beyond. This includes further product launches and further international expansion.
Moreover, in addition to the constant optimization of existing products, the company intends to expand the possibilities for customers to have virtual currencies. We are talking about withdrawing cryptocurrencies to external wallets and exchanges, and also transferring them to the Revolut system.
However, these options are not yet available – the company has them only in the plans. The first release in 2023 is the launch of stalking on this platform.
Many users wonder whether it is worthwhile to buy cryptocurrencies on Revolut. It turns out that the undoubted advantage of this solution is quite a lot of convenience and accessibility, since the platform offers a simple interface and easy operation, which makes buying virtual currency extremely convenient and accessible to a wide range of customers.
What is important, Revolut allows you to buy the most popular cryptocurrencies, such as Bitcoin, Ethereum or others. If the goal is to buy them, then using this popular financial platform may be the right solution.
It is also necessary to mention that Revolut is a financial platform that has been operating on the market for years. It is a licensed and regulated financial services provider, so users can feel safe using it.
Commissions and fees on Revolut and on popular crypto exchanges
If you are determined that you will not have to pay fees to buy or sell cryptocurrencies, Revolut will not be a good choice. This platform applies percentage fees that vary depending on the type of virtual currency. Before using it, it is worth carefully reading the information on fees.
It turns out that users of the Revolut platform have to pay a commission when trading cryptocurrencies. The amount depends on their account. The commission in 2023 is as follows:
Revolut Plus: 1.99% (minimum fee 5,99 PLN)
Revolut Standard: 1.99% (minimum fee 5,99 PLN)
Revolut Metal: 1.49% (no minimum fee)
Revolut Premium: 1.49% (no minimum fee)
It is worth noting that the most popular cryptocurrency exchanges also apply commissions on transactions.
In the case of the popular Binance exchange, each transaction is charged a maximum of 0.1 percent. We are talking here about the commission, which applies to users with an average monthly turnover of less than 1 million BUSD, that is, the dollar stable coin of this platform.
On the Binance exchange, every purchase or sale is subject to the same commission rate. It is low, which is an undoubted plus of this platform. It is worth adding that the rates decrease with the volume of turnover on the account and when using BNB tokens. They can be up to 25% cheaper. compared to standard rates (0.1%).)
If we talk about Coinbase, which is another popular crypto exchange, commissions are 0.4 percent. for makers and 0.6 percent. for taker. These are the highest possible commissions. They apply to users with an average monthly turnover of up to 10 thousand. USD. The higher the turnover, the smaller the commissions. For example, for a range of $ 50,000 to $ 100,000, the maker is 0.15 percent., and taker 0,25 percent.
Advantages of buying cryptocurrencies in the Revolution
Revolut can be a good solution for people who are just starting to invest in cryptocurrencies. Funding your account on this platform is available in several different ways. This process is fast and intuitive, so you can go to the game on the stock market after a while.
Unfortunately, Revolut also has limited opportunities, especially with the amount of coins available, but for beginners, the platform is quite enough.
Of course, even advanced users will find practical application of this financial platform. First of all, buying and selling cryptocurrencies is fluid. Funds are withdrawn immediately from the account and in the same way they are replenished, so this financial platform will be a good option for short – term trading-the application does not charge large commissions. In practice, they are among the lowest on the market.
Other advantages of buying cryptocurrencies on the Revolut platform are:
- no bank charges – as long as you do not exceed the limits
- attractive courses
- Low Investment Commission
Why not buy crypto on Revolut?
In addition to the above advantages, buying cryptocurrency on Revolut also has several drawbacks. Especially advanced crypto investors prefer to bet on a proven cryptocurrency exchange.
Disadvantages of buying cryptocurrency on Revolut
The disadvantage of Revolut in the context of buying cryptocurrency is primarily that you can only speculate on the prices of cryptocurrencies inside this financial platform – the user does not have physical ownership of the purchased virtual currency.
Unfortunately, there is no option to withdraw cryptocurrency to external wallets or transfer them to another platform that supports cryptocurrencies.
Another disadvantage of using this app is to use only the basic trading features. Experienced traders prefer to bet on other platforms that better meet their needs.
Unfortunately, Revolut has limited trading features in the context of cryptocurrency transactions. Please note that virtual currency keys are stored on behalf. This means, in short, that the user does not have full control over their cryptocurrencies.
Other disadvantages of buying cryptocurrency on Revolut are possible restrictions on withdrawals and limited control over privacy.
How to play cryptocurrencies on Revolut?
Revolut is a popular financial platform that has also been offering cryptocurrency investing for a long time. In the application you can invest in more than 100 different coins. It is also possible to transfer funds between its users.
How to buy cryptocurrency on Revolut?
To trade cryptocurrencies on the Revolut platform, you do not need an external wallet. You only need to have one of the traditional currencies recharged wallet. To buy a cryptocurrency on the Revolut platform, you just need to go to the “cryptocurrencies” tab and click the “Invest” button or choose one of the virtual currencies and enter its specific value.
Revolut allows you to instantly exchange FIAT currency for cryptocurrency and vice versa. Initially, the transaction goes into a waiting State, and then an attempt will be made to execute the exchange.
How long does it take to buy cryptocurrency on Revolut?
The process is approved in a few seconds. After the order is approved in the application, the price will be blocked, and the transaction will be updated and completed. From this point on, it can place a recurring order to buy selected virtual currencies. There will also be orders for automatic cryptocurrency exchanges-Limit or Stop.
The process of investing in cryptocurrencies on the Revolut platform is very simple and intuitive. The platform sets the exchange rates from partner exchange offices and calculates the average price weighted by volume.
The user can set the settings to automatically receive notifications about changes in the price of cryptocurrencies whenever the price changes by more than 2%. Simply enter the “Profile” section and activate the “cryptocurrency price volatility Alerts”section in privacy
Pit tax settlement on cryptocurrencies in Revolut
Very important are the payment of personal tax, the cost of obtaining income in the issue of cryptocurrencies. You have to prove everything to the Tax Office.
It turns out that the Revolut platform does not issue a PIT-8C form – this option is common for standard brokerage houses.
When investing in cryptocurrencies, the user must pay special attention to settling accounts with the Tax Office. In the case of Revolut, we are talking about so-called self-taxation.
When buying cryptocurrencies will not be suitable for you Revolut?
It turns out that first of all, advanced and experienced traders should bet on other platforms for investing in cryptocurrencies.
The downside of Revolut is that it cannot send cryptocurrencies directly to other users ‘ wallets. This platform uses third-party providers who store virtual currencies for customers. Unfortunately, users do not have access to the private key associated with its funds.
If you want more freedom to use your cryptocurrencies, Revolut will not be a good choice. Moreover, this platform also sets a maximum limit – 100 thousand. dollars. There is also a daily limit of 100 operations.
What alternatives to buying cryptocurrency besides Revolut?
If your goal is also to buy many different cryptocurrencies, it will be worth considering a platform other than Revolut – this company offers a limited number of virtual currencies. In case you want to invest in these less popular or specific cryptocurrencies, unfortunately, they may not be on the Revolut platform. Then a much better option will be to use the most popular crypto exchanges.
Instead of Revolut, it is worth using popular cryptocurrency exchanges. Binance, Kraken, or Coinbase will definitely be a great choice. All these crypto exchanges have been operating in the market for years. They are safe and use low fees. You can also consider other popular cryptocurrency exchanges, such as OKEx, Huobi or Bittrex.
However, if you are a beginner investor in the crypto market, Revolut can convince you with attractive rates, ease of Use and more. Just a few clicks to open an account, for example, Bitcona or Ethereum. You can count on automatic exchange and a quick process of selling cryptocurrency.
Summary
It is worth adding that the owners of the Revolut platform have plans to further improve the platform in terms of investing in cryptocurrencies. Users can expect additional options, improvements and amenities in the future.
The company’s ambitious plans even include matching the offer to the most popular cryptocurrency exchanges available on the market.
Therefore, it can be expected that in the near future many advanced and experienced traders will begin to invest in cryptocurrencies through the Revolut portal.